The hot national trend of rare earth integration is gradually taking shape behind the scenes. On March 30th, the Jiangxi Quzhou Rare Earth Group officially launched its operations. According to attendees of the meeting, the event was essentially an unveiling ceremony for the new group, but it was not publicly labeled as such, highlighting the low-key approach taken by the organizers.
Zhang Anwen, deputy secretary-general of the China Rare Earth Society, noted that the establishment of the Jiangxi Quzhou Rare Earth Group signifies that the Luzhou Rare Earth Integration Platform has been solidified, and the main structure of China’s rare earth integration now follows a “4+1†framework. This framework includes four major state-backed entities plus one regional player.
An authoritative source from the China Nonferrous Metals Industry Association mentioned that while the results of the rare earth integration have already been achieved, they remain undisclosed. The five key players involved in this “4+1†model are Baotou Steel Rare Earth, Chinalco, Minmetals, Guangzhao Nonferrous Metals, and the newly formed Jiangxi Quzhou Rare Earth Group.
According to insiders at the on-site meeting on the rectification and integration of the rare earth industry in Jiangxi, the Jiangxi Quzhou Rare Earth Group holds exclusive mining rights for the region's rare earth resources. It controls all 44 mining permits in Jiangxi, and plans to integrate downstream smelting and application enterprises within the area. The goal is to consolidate 70-80% of the region’s mining and smelting capacity under the group, with projected output reaching 40,000–60,000 tons annually. In comparison, China’s total rare earth mining quota in 2012 was around 90,000 tons.
Previously, the Jiangxi Zhongzhou Rare Earth Resource Integration Platform had not been fully established, leading to intense competition between central enterprises and local stakeholders. Companies like Minmetals and Baotou Steel Rare Earth have actively sought involvement, aiming to gain control over the region’s valuable resources.
In May 2011, the State Council issued "Several Opinions on Promoting the Sustainable and Healthy Development of the Rare Earth Industry," setting a goal to establish a standardized and orderly rare earth development system within 1-2 years. The plan also aimed to create a rare earth industry dominated by large enterprises, with the top three groups in the southern ion-type rare earth sector reaching over 80% market concentration.
With these developments, the national rare earth integration initiative has officially begun. Major players such as Minmetals, Chinalco, China Color, Jiangxi Copper, Guangzhao Nonferrous, Xiamen Tungsten, and Yanzhou Mining have all joined the wave of mergers and acquisitions, striving to secure their positions in the "Top Three" quota.
Zhang Anwen further explained that currently, China’s rare earth integration has formed a “4+1†framework: Chinalco integrates Jiangsu-based rare earth companies; Guangshao Nonferrous leads integration in Guangdong; Ganzhou Rare Earth Group serves as the platform for rare earth resource consolidation in Jiangxi; Minmetals has merged several rare earth firms in Jiangxi, Guangxi, and Hunan, and aims to expand into Guangdong. The fifth entity is the northern rare earth group led by Baotou Steel.
Among these five major players, both Baotou Steel and Jiangxi Quzhou Rare Earth Group hold significant advantages in rare earth resources, creating a distinct north-south divide in the industry.
China’s rare earth resources can be broadly divided into light and heavy rare earths. Northern light rare earths are mainly found in Baotou (Inner Mongolia), Liangshan (Sichuan), and Weishan Lake (Shandong). Southern heavy rare earths are concentrated in Ganzhou, Jiangxi. Baotou Steel, a core player in northern light rare earths, is actively expanding its alliance with companies in Sichuan and Shandong, aiming to form a comprehensive northern rare earth group.
Data shows that the Baiyun Obo Mine, operated by Baotou Steel Group, is the largest rare earth mine in China, containing approximately 87.7% of the country’s reserves. As Baotou Steel accelerates its rare earth integration efforts, its resource base is expected to grow even further.
Jiangxi’s medium and heavy ionic rare earth reserves account for about 40% of China’s total ionic rare earth reserves, primarily located in Zhangzhou. All mining rights in the area are controlled by the Jiangxi Quzhou Rare Earth Group.
Additionally, there are still many untapped rare earth resources across the country. Compared to other players, Minmetals and Chinalco have relatively lower levels of rare earth resources among the five major integration entities.
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